Could Behavioral Economics Help Improve Diet Quality for Nutrition Assistance Program Participants?

As obesity has come to the forefront of public health concerns,
there is growing interest in finding ways to guide consumers' food
choices to be more beneficial for their long-term health. About one
in five Americans participates in at least one of the nutrition
assistance programs sponsored by the U.S. Department ofAgriculture.
This study uses behavioral economics, food marketing, and
psychology to identify possible options for improving the diets and
health of participants in the Food Stamp Program; the Special
Supplemental Nutrition Program for Women, Infants, and Children
(WIC); and the National School Lunch and School Breakfast
Programs.

What Is the Issue?

USDA and other public health agencies historically have provided
recommendations on how to make food choices that promote health and
prevent disease. Food manufacturers and marketers, on the other
hand, have discovered that certain psychological cues, such as
packaging and presentation, are efficient ways to increase
consumption of their products. Could similar marketing approaches
be used in public health efforts to improve diet quality and reduce
body weight among U.S. food assistance program participants?
Insights from behavioral economics shed light on several factors
that could help economists and policymakers better understand food
choices. In 2005, over half of all nutrition assistance program
participants were children. Many notions about what is good or
acceptable to eat are determined in childhood. Improving diet
quality among these nutrition program participants has the
potential to guide food choices at a critical time, when a child's
dietary preferences are being defined.

What Did the Study Find?

This study incorporates findings from behavioral economics, food
marketing, and psychology to propose insights into how people make
food decisions. Recognizing that consumption choices are determined
by factors other than prices, income, and information broadens the
array of strategies that could influence consumer food choices and
improve diet and health. This exploration of new ideas, however, is
by no means a recommendation or endorsement of any of them. A
thorough analysis of costs, benefits, and potential impacts would
be needed before any strategy could be considered as a policy
option.

People have problems of self-control when choosing
food, either because they prefer immediate gratification
or because they are under the influence of a visceral factor, such
as feeling hungry. Allowing them to preselect more healthful
choices may be effective. For example, letting students preselect
menu options in the National School Lunch or School Breakfast
Programs or giving food stamp participants the option to preorder
groceries by telephone or online may improve the healthfulness of
their food choices.

People place more weight on default options."
Another idiosyncrasy of consumer choice frequently observed in
experimental studies is that individuals exhibit an asymmetry in
how they value gains relative to losses. This asymmetry gives rise
to anomalous behavior, where individuals are willing to pay much
less to acquire an item than they are willing to accept to part
with it. It also makes them much more likely to choose the default
options, even when the costs of switching to an alternative are low
or even zero. Making the default menu option of school meals more
healthful, such as a fruit salad instead of French fries, may
increase the likelihood that they will choose more healthful
foods.

People categorize income into mental
accounts. "Mental accounting" helps explain why
coupons that can be used only for food purchases have been shown to
be more effective at raising food spending among food stamp
participants than an equal benefit amount of cash. If funds are
earmarked for a specific purpose, recipients spend within a certain
category until funds are entirely depleted. Specifying amounts of
food stamp allotments that go toward the purchase of healthful
foods, such as fruits, dark green vegetables, and whole grains, may
be another option for improving diet quality of program
participants.

People undervalue fixed costs relative to variable
costs. When only certain items can be selected
using prepayment (fixed costs), those items will be chosen more
often than those that can be purchased only with cash (variable
costs). In the school meals programs, for instance, students, in
conjunction with parents or guardians, could specify that only more
healthful items be purchased with prepaid cards.

Food decisions are often based more on emotion than
rational thought. Impulsive behavior, such as
choosing less healthy foods over healthier foods, may result from
how the food is presented, the presence of stress, or other demands
on an individual's "processing" ability. When processing resources
are low, it is more likely that an individual will make consumption
choices based solely on immediate considerations. Drawing attention
to more healthful foods-by making them more accessible or
displaying them more prominently in school cafeterias-might
mitigate the effects of a distracting environment and increase the
likelihood that students choose more healthful menu options.

External cues can have a major effect on the food
selected, the amount consumed, and the eater's
perception of how much was
consumed. Noise levels,
lighting, and distractions, as well as the size and shape of foods
and food containers, affect how much people eat. Adjusting these
factors can have a major impact on how much is eaten for a meal or
snack. Reducing the number of students seated at each table or
making school cafeterias more brightly lit are possible options
that might help students better monitor their actual
consumption.

How Was the Study Conducted?

This study incorporates findings from behavioral economics, food
marketing, and psychology to explore various methods of improving
individuals' diets and health. Within the context of USDA nutrition
assistance programs, such as food stamps, WIC, and the school meals
programs, these findings provide an opportunity to begin thinking
of new ways to encourage program participants to choose diets that
are better aligned with their own goals for future health.

Last updated: Sunday, May 27, 2012

For more information contact: David R Just, Lisa Mancino, and Brian Wansink